Why should I explore experimental economics?
24 September 2015
Unlike the traditional study of economics – which relies heavily on existing data and theoretical assumptions to predict market behaviour, interactions and outcomes – experimental economics captures tailored data designed to test new or alternative economic hypotheses.
While the approach may deviate considerably from conventional academic methods, the goal for traditional and experimental economists is the same: to improve the living conditions of people in their everyday lives.
What does experimental economics do?
The notion of economics being an experimental field, rather than an exact science, is not new. Since the late 1940s, a number of respected economists have – in one form or another – rallied to support the methodology and findings of experimental economics.
Notable derivatives of the field include the introduction of the ‘behavioural revolution’, from which came a number of now widely accepted economic theories and mechanisms, including loss aversion, asymmetric information and efficient markets.
Why should I consider experimental economics?
Applying the results of an economic experiment to the real economic decisions you will make for your company, your client or your community is a real asset. Decreasing the risk of your decisions is a prudent move, no matter what they are. Being able to understand a variety of economic concepts and their results will help you create a real influence in the global market.
Learning the fundamentals of economics in an online Master of Business Administration (MBA) is the first vital step to being able to conduct your own experiments in economics.
Use experimental economics to innovate change
Undertaking Masters study is the perfect time to test your ideas in experimental economics. You can flex your innovative and creative strengths – without any ‘real world’ repercussions if you find your theories still need fine-tuning. You could even use your Industry Research Project to explore experimental economics in detail, giving yourself a powerful research tool to use throughout your career.
An online MBA or GDA will give you all the fundamental economic knowledge you need to be able to branch out into experimental economics. To learn more about our courses and your opportunities, speak to one of our Student Enrolment Advisors. We’re available Monday – Friday on 1300 589 882.